***you cannot click and edit in these fields. this is just showing what the ques
ID: 2524595 • Letter: #
Question
***you cannot click and edit in these fields. this is just showing what the question is looking for
A partially completed pension spreadsheet showing the relationships among the elements that constitute Carney, Inc., defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits earned by employees in prior years using the more generous formula. The prior service cost created by the recalculation is being amortized at the rate of $4 million per year. At the end of 2018, the pension formula was amended again, creating an additional prior service cost of $30 million. The expected rate of return on assets and the actuary's discount rate were 10%, and the average remaining service life of the active employee group is 10 years Required 1. Fill in the missing amounts 2. to 4. Prepare all the necessary journal entries for 2018 Complete this question by entering your answers in the tabs below Req 1 Req 2 to 4 Fill in the missing amounts. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Enter credit amounts with a minus sig and debit amounts with a positive sign.) s indicate credits debits otherwise Prior Service Cost -AOCI Net Pension PBO Plan Assets Cash ($ in millions) ervice Cost Net Loss- (Liability)/ Asset AOCI Expense (950) 900 50 105 (50) Balance, Jan. 1, 2018 Service cost Interest cost Expected return on assets Adjust for: 94 Loss on assets Amortization of. Prior service cost Net loss Loss on PBO Prior service cost Cash funding Retiree benefits Bal., Dec. 31, 2018 (25) 90 795Explanation / Answer
(ALL VAULES IN $)
Particular
PBO
Plan assets
Prior service cost
Net loss
Pension expense
Cash
Net pension asset (liability)
Bal, Jan 1, 2018
(950)
900
50
105
(50)
Service cost
(94)
94
(94)
Interest cost
(95)
95
(95)
Expected return
90
(90)
90
Adjust for: loss on assets
(9)
9
(9)
Amortization of: prior service cost
(4)
4
Net loss
(1)
1
Loss on PBO
(25)
25
(25)
Prior service cost
(30)
40
(30)
Cash funding
90
(90)
90
Retiree benefits
276
(276)
Bal, Dec 31,2018
(918)
795
86
138
104
(123)
Working Notes:
Amortization of net loss:
Net loss – AOCI
$105
Interest expense ($950 X 10%)
$95
Excess
$10
Average service file
10 years
2011 amortization
$1
Plan Assets Dr. 90
To PBO Cr. 189
To Amortization of Prior Service Cost Cr. 4
To Amortization of Net Loss Cr. 1
Since, question does not specify about journal entries as it just a image of question. The question does not contains all the images that clarify about the journal entries
Particular
PBO
Plan assets
Prior service cost
Net loss
Pension expense
Cash
Net pension asset (liability)
Bal, Jan 1, 2018
(950)
900
50
105
(50)
Service cost
(94)
94
(94)
Interest cost
(95)
95
(95)
Expected return
90
(90)
90
Adjust for: loss on assets
(9)
9
(9)
Amortization of: prior service cost
(4)
4
Net loss
(1)
1
Loss on PBO
(25)
25
(25)
Prior service cost
(30)
40
(30)
Cash funding
90
(90)
90
Retiree benefits
276
(276)
Bal, Dec 31,2018
(918)
795
86
138
104
(123)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.